Company Number: 13201203

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: MEDIUM
   Justification: The company has shown a significant turnaround in net current assets and net assets from negative values in previous years to positive figures in the most recent year. However, the overall asset base remains very modest, with minimal share capital and limited cash reserves. The business is relatively young and small, with only one employee, and operates in a competitive trading sector.

2. Key Concerns:

• Historical Financial Instability: The company reported negative net assets and net current assets for at least two consecutive years before improving in the latest year, indicating past financial stress.
• Low Capitalization: Share capital is minimal at £2.00, and the net assets are only £1,634, which limits the company's buffer against unexpected losses or liabilities.
• Modest Liquidity: Although cash increased in the latest year, the absolute cash and current asset values are still quite low (£3,832 cash), potentially limiting operational flexibility and resilience to cash flow shocks.

3. Positive Indicators:

• Recent Financial Improvement: In the 2024 financial year, net current assets improved to £1,634 from a negative £433 the previous year, showing signs of better working capital management.
• On-time Filing and Compliance: All filings including accounts and confirmation statements are up to date with no overdue reports, indicating good regulatory compliance and governance.
• Stable Management: The same two directors have been in place since incorporation, suggesting stable leadership and continuity.

4. Due Diligence Notes:

• Review detailed profit and loss (not filed publicly) to understand revenue trends, margins, and cost structure since turnover and profitability data are not available in the filleted accounts.
• Investigate the nature and sustainability of the recent improvement in net assets—whether from operational profitability, capital injections, or other one-off items.
• Assess the adequacy of cash flow management and whether the company has access to external funding or credit facilities for growth or contingencies.
• Verify no director disqualifications or adverse regulatory actions exist, although none are indicated in the data provided.